Cohmad, Jaffe Draw Closer Look

Regulators Raise Heat on 'Feeder' Firm; Testimony in Massachusetts

By

Robert Frank,

Tom Lauricella and

Aaron Lucchetti

Updated Jan. 14, 2009 11:59 p.m. ET

Regulators probing aspects of Bernard Madoff's alleged fraud are intensifying pressure on Robert Jaffe, a Cohmad Securities official who helped recruit investors for Mr. Madoff, after he failed to testify before Massachusetts officials.

Cohmad is a small brokerage house in which Mr. Madoff owns a stake and which operates out of the same Manhattan office as Mr. Madoff's stock-trading operation. Regulators are now trying to force Mr....